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Here's Why You Should Add Textron (TXT) to Your Portfolio
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Earnings estimates for Textron Inc. (TXT - Free Report) have been revised upward in the past 90 days. The Zacks Consensus Estimate for 2018 and 2019 moved up 5.4% and 2.2% to $3.33 and $3.74, respectively.
The stock has returned 24.0% in the past 12 months compared with the industry’s gain of 15.7%
Let’s focus on the factors that make Textron a profitable pick.
Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Backtested results indicate that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
Year-Over-Year Estimates & Long-Term Growth
Textron’s year-over-year earnings growth for 2018 and 2019 are estimated at 35.92% and 12.27%, respectively. Sales growth for 2018 and 2019 are projected at 3.19% and 1.14%, respectively. The company’s long-term growth is projected at 11.40%.
Debt-to-Capital & Current Ratio
Textron’s debt-to-capital ratio is at 41.98% compared with the industry’s 46.66%. The company’s current ratio is pegged at 2.27 compared with the industry’s 1.24.
A solid cash generation capability enables Textron to carry on cash deployment strategy.Based on solid cash flows, the company returned $571 million to shareholders through share repurchases in the second quarter compared with the $143-million share repurchases made in the year-ago quarter.
In June 2018, the U.S. Senate gave the final nod for the fiscal 2019 defense budget, which is worth $717 billion. This budgetary revision may have a positive impact on Textron’s upcoming results. This will also boost results of other companies like The Boeing Company (BA - Free Report) , Northrop Grumman Corp (NOC - Free Report) and Huntington Ingalls Industries, Inc (HII - Free Report) .
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Here's Why You Should Add Textron (TXT) to Your Portfolio
Earnings estimates for Textron Inc. (TXT - Free Report) have been revised upward in the past 90 days. The Zacks Consensus Estimate for 2018 and 2019 moved up 5.4% and 2.2% to $3.33 and $3.74, respectively.
The stock has returned 24.0% in the past 12 months compared with the industry’s gain of 15.7%
Let’s focus on the factors that make Textron a profitable pick.
Zacks Rank & Surprise History
The company currently carries a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an average four-quarter positive earnings surprise of 20.44%.
VGM Score
The stock carries an impressive VGM Score of A.
Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Backtested results indicate that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
Year-Over-Year Estimates & Long-Term Growth
Textron’s year-over-year earnings growth for 2018 and 2019 are estimated at 35.92% and 12.27%, respectively. Sales growth for 2018 and 2019 are projected at 3.19% and 1.14%, respectively. The company’s long-term growth is projected at 11.40%.
Debt-to-Capital & Current Ratio
Textron’s debt-to-capital ratio is at 41.98% compared with the industry’s 46.66%. The company’s current ratio is pegged at 2.27 compared with the industry’s 1.24.
A solid cash generation capability enables Textron to carry on cash deployment strategy.Based on solid cash flows, the company returned $571 million to shareholders through share repurchases in the second quarter compared with the $143-million share repurchases made in the year-ago quarter.
In June 2018, the U.S. Senate gave the final nod for the fiscal 2019 defense budget, which is worth $717 billion. This budgetary revision may have a positive impact on Textron’s upcoming results. This will also boost results of other companies like The Boeing Company (BA - Free Report) , Northrop Grumman Corp (NOC - Free Report) and Huntington Ingalls Industries, Inc (HII - Free Report) .
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>